With it’s familiar Western culture, US companies commonly set their sights on Europe for a more seamless international expansion. France, in particular, is a popular target market because of its thriving culture and its tourist draw. Plus, the French is expected to the most commonly spoken language by 2050, so it’s not a bad place to start. If you’re considering an operation in the western region of Europe, we suggest you start grasping the basics of France employment law.
There are a number of legal liabilities to consider before hiring international employees, and France has a few quirks of its own. For example, income tax is not withheld by the employer today, but that will change in 2018. Also, employment contracts in France are not at will like many contracts in the US.
Discover the France employment law basics below before wrapping up your global expansion strategy.
Payroll Contributions for French Employees
French employees make social security contributions, which amount to roughly 22% of their gross salary at the time this article was written. This share equals an average of 43% for employers. The amount does vary, as some contributions are capped for wages up to four or eight times the social security ceiling, which sits at EUR 12,744 per month in 2016.
Social security rates include coverage for family benefits, accident at work and pension, among others.
Employee Pay Slips have a Long List of Requirements
Since we’re on the payroll train, it’s important to understand the requirements for employee pay slips. If you’re outsourcing your international payroll, something we highly suggest doing, this won’t be a concern.